UnThreaded | Threaded | Whole Thread (48) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Big Problems wth LongTermCare Insurance Date: 7/14/2013 11:03 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
"That said, we're not renewing because it's just too expensive and not our best option. If worse comes to worst, we will be able to cover a good 5 years with a reverse mortgage. Is anyone else here using that as LTC insurance?"



My Mom always said that her paid off house was her long term care policy. We had been instructed to sell it if she had to go into long term care and she made sure that we had all the right paperwork to sell it if we needed to.

My dad had passed away before her and even though her house was not real expensive, the numbers worked out so that her home equity, and social security, could have provided for her care for many years without depleting her other resources if it had been needed.

It is less liquid than stocks or bonds but home equity is really just part of someone's net worth that can be used for LTC.

This does not work quit as well if a spouse is still alive that might need the assets to live on for a long time.

Some people that are moderately well off know that they can afford long term care under the most probable circumstances, and if they go broke paying for LTC then they would have Medicaid (with all its issues) so the real reason to buy LTC insurance are;

1) To not impoverish a surviving spouse.

2) To ensure a better quality of care

3) To not deplete the estate so a large inheritance can be left.

If you are not concerned about leaving a large estate, which I agree with, and if you don't have a surviving spouse then using home equity to pay for LTC would help to be able to afford better care so there would be less need to buy insurance for that.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (48) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement